Showing papers by "IE University published in 2002"

Knowledge-Sharing Dilemmas:

Abstract: The exchange of information among organizational employees is a vital component of the knowledge-management process. Modem information and telecommunication technology is available to support such exchanges across time and distance barriers. However, organizations investing in this type of technology often face difficulties in encouraging their employees to use the system to share their ideas. This paper elaborates on previous research, suggesting that sharing personal insights with one's co-workers may carry a cost for some individuals which may yield, at the aggregate level, a co-operation dilemma, similar to a public-good dilemma. A review of the research on different types of public-good dilemmas provides some indications of the specific interventions that may help organizations encourage the kind of social dynamics that will increase overall knowledge sharing. These interventions can be classified into three categories: interventions aimed at restructuring the pay-offs for contributing, those that tr...

Enterprising Families Domain: Family-Influenced Ownership Groups in Pursuit of Transgenerational Wealth

Abstract: The field of family business studies has not explicitly identified the entrepreneurial potential of the family ownership group or adequately delineated the strategic requirements for sustaining wealth creation across generations. To address such issues, this paper presents the parameters for family-influenced transgenerational wealth creation. It identifies the family ownership group as the appropriate unit of entrepreneurial analysis and delineates the entrepreneurial strategy methods and family-as-investor mind-set that create the enterprising families domain. In so doing, the paper creates a true nexus between the fields of entrepreneurial strategy and family business studies.

The Q-Sort Method: Assessing Reliability And Construct Validity Of Questionnaire Items At A Pre-Testing Stage

Abstract: This paper describes the Q-sort, which is a method of assessing reliability and construct validity of questionnaire items at a pre-testing stage. The method uses Cohen’s Kappa and Moore and Benbasat’s Hit Ratio in assessing the question­ naire. Two examples are provided on how the method was applied in survey research.

Shared leadership in work teams: a social network approach

Abstract: In the past few years, the concept of leadership has shifted from the solitary leader to the team as a potential source of leadership. This shift from a single person to a “shared leadership” model requires new concepts and methods to capture the nature and structure of leadership by teams (Yukl, 1998). In this chapter, we argue that a social network approach helps to provide the conceptual framework and methodological tools to support a shared leadership perspective. To articulate this approach, we first outline some of the basic principles of social network analysis. We then discuss the nature of leadership networks, based on the traditional distinction between transactional and transformational leadership. Next, we discuss the distributional properties of these leadership networks, describing and applying the concept of network centralization. Finally, we discuss the implications of a network conception of shared leadership for research and theory development.

A network effects model of charisma attributions

Abstract: We propose a network effects model of charisma that specifies the distribution and change of charisma attributions among individuals connected in a social structure. Data from a police organization...

Information Technology Governance Processes Under Environmental Dynamism: Investigating Competing Theories of Decision Making and Knowledge Sharing

Abstract: This paper describes an empirical study of IT governance processes in complex organizations under conditions of environmental dynamism. Rooted in competing theories of organizational decision making and knowledge sharing, and based on a case study investigation of large, distributed organizations, this study examines the design and effectiveness of IT governance processes from both rational-analytical and social-learning perspectives. The results indicate that, regardless of the level of environmental dynamism, effective IT governance processes are characterized by both methodological comprehensiveness and social capabilities. The implications for theory development, future research, and IT governance practices are discussed.

Existing Business Models for Auctions and their Adaptation to Electronic Markets.

Abstract: In this paper we report an extensive analysis of the different business models for auctions found on the Web. Three hundred websites randomly selected from the main search engines are analyzed, classified, commented and compared in terms of their basic parameters. Departing from a theoretical review of the classical auction theory applied to the online world, twelve business models are defined and analyzed. The confusing terminology regarding the new online auction models is also conveniently organized. The results show that the new possibilities brought by the popularity of the Internet and the World Wide Web are making possible emergent business models in both the business-to-consumer and the business-to-business arena.

IPO Lock-in Agreements in the UK

Abstract: When a company offers shares in an initial public offering (IPO), existing owners often enter into lock-in agreements prohibiting them from selling shares for a specified period after the IPO. There is some recent U.S. evidence of predictable share-price movements at the time of expiry of these lock-in periods. Using a sample of 188 firms, 83 classified as high-tech and 105 others, that went public on the London Stock Exchange (LSE) during 1992-1998, we focus on the characteristics of lock-in agreements in the UK and on the behavior of stocks returns around the lock-in expiry date. We find that the lock-in contracts of LSE-listed firms are much more complex, varied and diverse than U.S. contracts, which usually standardize the lock-in period at 180 days after the IPO. We also find evidence of negative abnormal stock returns at and around lock-in expiry of similar magnitude to those reported in U.S. studies. However, these abnormal returns are typically not statistically significant. While the deterioration in stock returns immediately around the expiry date appears to be much more particularly pronounced for high-tech stocks than for others, the differences in performance are not statistically significant.

Small and Medium Size Enterprise Financing: A Note on Some of the Empirical Implications of a Pecking Order

Abstract: Asymmetric information models predict a 'pecking order' which reflects a combination of owner-manager preferences and external capital supply constraints whenever insiders know more about the true value of the firm's prospects than outsiders. The pecking order results in retained earnings being the most preferred source of finance, then debt and finally the issue of new shares to outsiders. Using a sample of 629 UK SMEs over the five-year period from 1990 to 1995 we find evidence consistent with a pecking order in which retained equity is preferred over debt. As expected, the evidence of a pecking order was particularly strong in respect of the closely-held firms in our sample.

It as an agent of social change: lonxanet and the case of the galician artisanal fisheries

Abstract: Information technologies (IT) can be used as an agent to foster social change. This case study describes an Internet start-up, Lonxanet, and analyzes its potential role as a catalyst of changes in the Galician (northwest Spain) artisanal seafood fisheries. These fisheries are traditionally associated to rural communities of fishers, selling their products in local auction markets known as lonxas. Galician seafood is hugely appreciated in the Spanish market, where products achieve very high prices and have luxurious connotations. However, the product passes through a wide array of intermediaries where lack of transparence prevails until it reaches the end market, so fishers achieve just a tiny amount of the potential profits despite assuming all the risks associated to the extractive phase. In order to foster social and economic change, Lonxanet proposes a large electronic marketplace initiative partially owned by fishers’ organizations, integrating marketing and logistic services and selling directly to restaurants and other final consumers. This change enables fishers to exert control over the whole commercial cycle. Consequently, they switch from a survival mentality to an industrial one, and they become especially interested in the sustainability of the resource, thus achieving environmental benefits.

The Impact of Corporate Social Responsibility Policies on the Employees´ Psychological Contract

Abstract: (WP33/02 Clave pdf) The relations between the organizations and their employees are governed by a highly complex framework of motives and perceptions difficult to unravel. As a result of the daily practice of such relationship, there is a permanent exchange of individual efforts and incentives for the sake of satisfaction of organizational needs. The objective of the present work is to look into the essence of such exchanges and specifically to analyse the power of certain corporate policies, such as Social Responsibility ones, as incentives both for stimulating employee´s willingness to cooperate and for enriching his/her commitment with the company...

Gender, the State, and the Audit Profession: Evidence from Spain (1942-1988)

Abstract: Extant knowledge on gender and auditing overwhelmingly relies on evidence gathered from a limited group of Anglo-Saxon countries. It is widely admitted, however, that gender issues are affected by the institutional contexts of the investigation. The Anglo-Saxon settings, we contend, embrace a number of idiosyncratic, institutional characteristics that advise caution in the generalisability of results. Our study addresses the role of gender in Spanish audit practice during the period 1942 to 1988. The environment of the Spanish audit profession witnessed the peaceful transition from a dictatorship to a full-fledged democracy as well as the emergence of a free market economy from a system characterised by stiff economic autarchy and an overriding intervention of the state in the economy. We found that the dominant role of the state in the Spanish society affected the structure of the audit profession and made impossible the emergence of an autonomous project. In particular, our findings reveal that the audit profession did not have an independent strategy about the role of women at work, but mimicked the attitudes deployed by the state during our observation period.

Spare parts and maintenance optimization in a mobile telephone company

Abstract: Telecommunication companies depend on high availability of equipment to maintain service quality. In cellular communications electronic cards maintenance is basically reduced to exchanging parts as they fail. These parts are geographically dispersed in unmanned locations. Spares and maintenance policies are thus interrelated and tend to follow multiechelon configurations, following the architecture of the physical network. We describe the optimization of spare parts and maintenance policies performed by the Venezuelan mobile phone operator Movilnet. Both system issues (reduction of SKU, classification of items, network practices, and data integrity) and modeling issues, centered on the adaptation of the METRIC model to the simultaneous optimization of spare parts and personnel resources, are discussed. The systematic application of these resulted in important reductions in the purchasing of spare parts, without quality deterioration.

Pay Comparability Across and Within UK Boards: An Empirical Analysis of the Cash Pay Awards to CEOs and Other Board Members

Abstract: Drawing on the literature on social comparison and equity theories, this paper analyses the determinants of, and the relationships between, the cash pay awards of CEOs and other board members for a sample of large UK companies over the period 1992-95. Our results suggest that external labour market and internal (i.e., within board) pay comparisons are important in explaining both CEO and other directors' pay awards. In the case of CEOs, however, there is evidence of an asymmetric adjustment to prior period pay anomalies, whereby the pay of the relatively underpaid executives displays significantly greater sensitivity to external market comparison pay levels. This asymmetric adjustment process results in a 'bidding-up' of average CEO pay relative to other board members over the four year period investigated.

Logistics strategies and practices in venezuela

Abstract: This paper presents an empirical and statistical analysis identifies the key characteristics and opportunities of logistics in Venezuela. Among the key findings are conservative approaches to logistics in a protected market whose environment is changing faster than preferred by the responsible actors, limiting the application of modern logistics practices. This and other considerations, such as geographical location, production of commodities and the identification in the strategy of the firms of the need for better logistics practices indicate important opportunities for the application of modern logistics practices.

An analysis of the robustness of Genetic Algorithm (GA) methodology in the design of trading systems for the Stock Exchange

Abstract: This paper analyzes the robustness of Genetic Algorithms (GAs) technique for its application in the field of trading systems design for the Stock Exchange. The functioning of the GA is driven by the control parameters: crossover and mutation probabilities, number of generations, and size of population. Whether the results generated by the application of GAs to a specific problem are conditioned by the value assess to these parameters, becomes a main research field. The purpose of this paper is to develop a sensibility analyses about the dependency of the GA to the value of these parameters. The sensibility analyses is developed in part by a hierarchic GA (a GA which is used to the optimisation of the control parameters of a second GA which is used to design the trading system). The results find that the GAs are a very robustness technique when logical ranges are considered for these parameters (taken into account that there is a high level of complementation between them), with a wide optimisation capacity.

Communication Conflicts in NGO: A Theoretical Approach

Abstract: Solidarity is more than just a feeling of compassion and suffering. On the contrary, it is the firm and unshakeable conviction of the need to make an effort for the common good. It arises out of the conviction that all men are equal and although it is clearly the case that an emotional appeal has to exist for supportive action to be brought about, it is not alone enough to turn sporadic aid into a stable line of conduct. We believe that it is necessary for there to be an effective evolution of the communication practices of NGOs, especially in the case of advertising, so as to base it on more rational and positive arguments that highlight the way the organization stands out, the effectiveness of its methods of action and the transparency of its management.

B2B e-Marketplaces: What’s in it for me?

Abstract: Commerce among firms through the Internet, the so-called B2B commerce, constitutes a newly developed area in which most theses are yet to be demonstrated. The value proposition for firms in B2B commerce suggests the creation of highly efficient markets, access to a larger number of suppliers and/or customers, or even internal productivity increases. However, firms’ perceptions of such benefits have not been empirically researched yet. In this study, 152 large Spanish firms are surveyed to gain some insights about their perceptions and developments regarding B2B. Results show both positive and negative priorities depending on aspects such as firms’ current state of B2B development, perceived role in a B2B scenario, or characteristics of the industry. These results can help to assess the future diffusion of B2B initiatives, and also to evaluate new functions and areas for development in e-marketplaces.

The management buy-out arena: differential slip in a tripartite alliance?

Abstract: The traditional focus on Management Buy-Outs (MBOs) has been upon concluding deals. However, substantial numbers of MBOs fail to exit and this paper suggests that the time is ripe for attention to be redirected towards post-deal evolution. Three phases in the MBO post-deal process are identified. These are depicted as The Spirit of Optimism, The Zone of Indifference and The Spiral of Mistrust, reflecting, respectively, the moment of contractual agreement, subsequent stagnation and downward slide in performance. As the MBO evolves through these phases of decline, this study focuses upon the interactions of three main parties: The Management Team, The Venture Capitalists and The Investment Bankers. The key objective is to capture the difficulties accruing to these parties as the MBO declines. The failures of the three main parties lie in identities, increasing problems of interaction and lack of communication. By linking micro, meso and macro levels of analysis a novel way of looking at MBOs is suggested which helps to avoid the trap of focusing only upon the moment the deal is done.

The Architecture of Leadership Cognition: A Multi-method Study of Mental Maps in a Manufacturing Co

Abstract: (WP27/02 Clave pdf) Grounded on a social constructionist perspective, this study focuses on followers´ intersubjective sense making about leaders. A socio-cognitive model of leadership is advanced in which followers´ views of their leaders are conceptualized as cognitive architectures composed of leadership and other organizational concepts. The cognitive aspect of the model suggests that leadership information does not exist in a vacuum, but rather it is integrated with other organizational concepts into a whole knowledge structure or mental map. The social side of the model states that followers actively construct their leaders in a social process as they interact with close friends...